Can former employer refuse to pay bonus?

mezelks

Hi All,
Apologies if in the wrong place...!
I have handed my notice in at the place I have worked for the past three years. I finish next week. As part of my contract, I am on a percentage of the profits. The companies financial year ended over 2 months ago and the accountants are taking a while to get the final figures sorted, which means my bonus hasn't yet been paid.
What I need to know is, legally, can they not pay my bonus if it is only ready after I've left the company? Or will they have to send me a cheque? I fulfilled all criteria, but just need to know if this money is definitely going to get to me!!
Thanks guys!

tomtontom

It depends on the terms of the bonus - what exactly does the contract say?

TrickyDicky101

AFAIK it depends on your contract - if the bonus is discretionary (which is typical - mine is for example), then yes they can just not pay it.

Undervalued

TrickyDicky101 wrote: »

AFAIK it depends on your contract - if the bonus is discretionary (which is typical - mine is for example), then yes they can just not pay it.

Indeed. In fact I'd go further than "typical" and say nearly universal.

However do check your contract carefully.

mezelks

I'm at work now so will study it when I get home. Thanks for your replies!

mezelks

Ok so my contract literally says...
"In addition to your annual salary, we will also pay you an annual bonus equivalent to 5% of the net profit the company makes for the period 1st July 2014 to 30th June 2015.
The bonus scheme is to be reviewed in June 2015 and can be amended at The discretion of the directors."
the bonus isn't mentioned again after this.
Where do you think I stand here?

bluenoseam

From that I'd say your chances of getting the bonus are slim if you leave - that one word "discretion" means a whole heck of a lot.

FBaby

The bonus scheme is to be reviewed in June 2015 and can be amended at The discretion of the directors."

I would argue that it is the 'scheme' that can be amended at discretion, ie. the rules of how it is awarded for everyone.

I expect your company has a policy/guidance on this scheme and this is what you need to read and see what it says about staff leaving after the end of the bonus year.

mezelks

Oh dear.
I've emailed the finance director so will hopefully get an answer one way or another. I'll keep you posted!
Thank you for your replies xx

dawyldthing

I wonder if it's normally paid towards Christmas time so it's like'here's your reward but Christmas bonus too' kind of thing

stevemLS

mezelks wrote: »

Oh dear.
I've emailed the finance director so will hopefully get an answer one way or another. I'll keep you posted!
Thank you for your replies xx

Agree but the scheme (reviewed very recently) could easily be reviewed to say that no bonus was payable to anyone who had either given notice to, or had already, left employment.

That type of provision is, I understand, quite common. I am in the public sector where talk of bonuses is pretty alien.